Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

In regard to the money message gridlock, I understand that there is contact. It would not be at my level but there is contact with the Government in an effort to unlock that. Hopefully, there will be some update on that.

I refer to the other points the Deputy. Dealing with the hard facts, of those who go into the insolvency process where a personal insolvency arrangement, PIA, is applied for, we have a 56% "Yes" vote and 44% is either a "No" vote or the protective certificate expires. Some 24% of that 44% is where the certificate has expired. We do not know what has happened in those cases. It could be that a deal has been done in some cases but in others it has not been. What we know for sure is that 56% is a "Yes" vote. That is at the first stage within the insolvency service. In regard to the appeals process, there were 632 appeals but only 180 were concluded and, of those, as the Deputy has said, only 57 have been approved. Everyone will acknowledge that there is a serious problem there. The issue is how do we deal with it.

The approach of lenders is forcing people to seriously examine the bankruptcy option. That is what some people are doing and it may be the right decision for them but I do not know as I am not an expert on it. I do not believe that when it comes to resolving a mortgage arrears situation on a family home that a person should have to go bankrupt. That is not what bankruptcy was designed for. It should not be necessary. What is happening in practice in the appeals system is that the lenders are frustrating the process. That is what I hear directly from people who are involved in it. There are affidavits flying all over the place and coming in at the last minute, looking for more discovery and more documents. This is relates to cases that have gone through the full insolvency process. They are just wearing people down and some people are just giving up. That is why figures for voluntary sales and voluntary surrenders are so high.

It is often noted that there are very few repossessions in Ireland. That is because people simply give up and either sell their house or hand the keys back to the bank. That is what is happening in practice.

The changes to the code of conduct on mortgage arrears in recent years have had a negative impact, tilting the balance in favour of the lender and leading to a dilution of borrowers' rights. The changes must be reviewed. What the banks fear most in any new legislation is that it might cause them to lose control of the situation. The feedback I have had is that they are very fearful of the Bill I have brought forward because it will mean that they can no longer frustrate the process indefinitely. An independent office making the final decisions and an appeals mechanism functioning within the process, as I am proposing, will mean that debtors can no longer be dragged through a cumbersome and lengthy court process. That will transform the landscape for those who are in arrears and genuinely making an effort to address the problem. The Bill is not a charter for people who refuse to engage and have no interest in servicing their mortgage. We all know of people who, in some cases, have paid nothing for years and have no intention of paying. These proposals are for the benefit of debtors who have made full disclosure, are paying what they can and making great sacrifices to keep their home. We should be on their side. The Bill is an effort to move in that direction.